NEW YORK (TheStreet) -- TheStreet's Jim Cramer says there are two factors at play for the oil trade as it pertains to the situation in Iraq. Firstly, oil workers could simply run away if the insurgency spreads nationwide, which means a few million barrels would come offline.
Secondly, what will President Barack Obama do? Cramer notes plenty of people get bullish in the market, but the president has said nothing is off the table. Cramer says there is an all-out war in one of the most important oil producers, one that investors thought could double its capacity within a few years. "It's just a negative across the board," he says.
Cramer advises investors to sit on the sidelines and wait in the week ahead. Stocks get hit when the president comes to the microphone and Cramer says we are back in that mode. Therefore, he suggests waiting until the stocks get hit to get involved.